Method for developing an enterprise alignment framework hierarchy by compiling and relating sets of strategic business elements

ABSTRACT

An enterprise strategy management system includes a first software module adapted to formulate a strategy description based on an assessment of environmental data, a second software module adapted to align the strategy description with available enterprise resources and deploy strategy implementation responsibilities, and a third software module adapted to measure the execution of the strategy and identify opportunities to optimize strategic performance. The first, second and third software modules are adapted to implement a continuous strategy management cycle, and may be executed in any order. In one embodiment, the first software module is an STRATEGY FORMULATION module, the second software module is an STRATEGY ALIGNMENT module and the third module is an STRATEGY IMPLEMENTATION module. The STRATEGY FORMULATION module includes software components for assessing environmental data, formulating and analyzing strategic alternatives and determining and approving a final, multi-level strategy description. The STRATEGY ALIGNMENT module includes software components for aligning strategy components, describing and aligning operational strategy components, planning projects, initiatives and performance metrics activity, and deploying implementation responsibilities. The STRATEGY IMPLEMENTATION module includes software components for activating the launch of activities, implementing and measuring the execution of strategy and performance results, and identifying the opportunities to optimize strategic performance.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates generally to the field of strategicplanning and, in particular, to a system and method for aligning,managing and implementing an enterprise strategy.

2. Description of the Related Art

Strategy management is critical to the success of many organizationssuch as businesses, charities, government agencies and schools. Througha strategic planning process, the leaders of an organization attempt toclarify the organization's long-term goals and develop a plan foraccomplishing those goals. A successful strategy anticipates futurethreats to the organization and positions the organization to takeadvantage of new opportunities that may arise.

The strategic planning process is time consuming, expensive and requiresa complex analysis of the organization and its environment. As a result,the typical strategic planning process is implemented only once per yearand only addresses a small subset of the issues that face theorganization. A conventional strategic planning process for a businessis illustrated in FIG. 1. A strategic planning committee is created fromthe business' senior management, and the members of the strategicplanning committee conduct an audit of the business and its environment(i.e., an environmental scan) to determine the business' strengths andweaknesses (Step 2). A typical audit involves intensive data gatheringfrom sources throughout the business organization, as well as sourcesexternal to the business. Next, the planning committee defines theorganization's mission, vision and guiding principles (Step 4). Amission statement describes the present nature of the business,including the business' purpose and direction (i.e., the goals thebusiness is trying to accomplish). A vision statement describes thedesired future of the business, and guiding principles outline thevalues and philosophy of the business that guide the behavior of itspersonnel.

The planning committee compares the current state of the business, asdetermined by the environmental scan and the mission statement, to thebusiness' desired future as identified in the vision statement andguiding principles. Based on this comparison, the planning committeeidentifies long-term goals, which define the changes the business shouldimplement in order to achieve its stated vision (Step 6). The planningcommittee selects a manageable number of long-terms goals that arereasonable for the business to achieve and defines strategies forachieving these selected goals. The environmental scan, mission, vision,guiding principles and long-term goals and strategies are compiled intoa formal strategic plan, which is used by managers throughout theorganization to create operating plans directed towards accomplishingthe organization's goals (Step 8). Managers and employees then implementthe operating plans (Step 10). After creating the formal strategic plan,the planning committee disbands until the following year when a newstrategic planning process will start.

The prior art strategic planning processes have many drawbacks. Forexample, the time, effort and expense required by the strategic planningprocess limit effective strategic planning to a once-a-year event thataddresses only a small number of strategic objectives. Changes in theenvironment or refinements to the strategic plan are seldom considereduntil the next year's strategic planning process. As a result,organizations are slow to react to their environments, includingenvironmental changes that may invalidate some of the assumptionsunderlying the current strategic plan.

To assist with the strategic planning process, many organizations retainlarge consulting firms. Typically, consultants are retained to guide theplanning committee through the strategy formulation process, and leavethe implementation of the strategy to the organization. A largeorganization may have numerous managers in various business units,departments and divisions, with each manager independently interpretingthe strategic plan and attempting to develop an operating plan thatachieves the strategic goals. To ensure that its managers are focused onachieving the enterprises' strategic goals, many organizations use abalanced scorecard (BSC) system. Through a BSC system, strategic goalsare described in terms of metrics that must be met in order to achievethe strategy. These metrics are passed to the managers who developoperating plans to achieve these metrics.

Although a BSC system may simplify strategy planning and implementation,relying on a BSC system has many drawbacks. For example, an entirestrategy can seldom be described completely in terms of numbers andthere is usually a “gap” between the selected metrics and the strategicgoal that will be ignored during strategy implementation. In addition,the performance metrics used in the BSC system are established based onhistorical results. While managers and employees are working to achievethese historical metrics, changes in the current environment often goignored. When it is discovered that managers and employees have beenassigned metrics that do not further the strategic goals, the historicalresults are analyzed and new metrics are created.

A successful implementation of the strategic plan will require thealignment of the organization's resources and strategic initiatives withthe organization's strategic vision. Recent advancements have focused onimproving the predictive and analytical capabilities of a BSC system tomake better predictions of the future and create better fits withstrategic goals. There has been little advancement, however, inimproving the day-to-day management of an enterprise's strategyimplementation. Large enterprises, face new challenges every day andmust be prepared to react to changes in their resources, environment andstrategy. In today's world, the enterprise's ability to manage andaccelerate organizational change has become an essential element ofsuccess.

SUMMARY OF THE INVENTION

In a preferred embodiment, the present invention provides an enterprisealignment framework for assisting an organization's management infocusing an entire enterprise on achieving identified strategic goalsand managing this alignment on a day-to-day basis. The enterprisealignment framework provides managers with a tool to ensure thatstrategic goals are well supported by initiatives and that theinitiatives are focused in the same direction with minimal overlap. Theenterprise alignment framework also assists managers in definingleadership roles, responsibilities, and performance metrics.

In a preferred embodiment, the ESM includes a STRATEGY FORMULATIONsoftware module, a STRATEGY ALIGNMENT software module and a STRATEGYIMPLEMENTATION software module. The STRATEGY FORMULATION module includesapplications and processes for assisting the organization's managementin setting and refining the strategic direction of the organization. Inoperation, end users utilize the STRATEGY FORMULATION module to assessthe organization's internal and external environment, formulate andanalyze strategic alternatives and determine and approve a finalstrategy description. The STRATEGY ALIGNMENT module includesapplications and processes for assisting the organization's managementin focusing the enterprise on achieving the described strategic goals.In operation, end users utilize the STRATEGY ALIGNMENT module to aligndescribed strategy components, describe and align operational strategycomponents, plan projects, initiatives and performance metrics activity,and deploy implementation responsibilities. The STRATEGY IMPLEMENTATIONmodule includes applications and processes for assisting theorganization's management in efficiently distributing and executing theorganization's strategy. In operation, end users utilize the STRATEGYIMPLEMENTATION module to the launch of activities, implement and measurethe execution of strategy and performance results, and identifyopportunities to optimize strategic performance. In a preferredembodiment, the STRATEGY FORMULATION module, STRATEGY ALIGNMENT moduleand STRATEGY IMPLEMENTATION module interact to create a continuousstrategy planning cycle. Unlike the prior art strategic planningprocesses, the steps in the continuous strategy planning cycle may beexecuted at any time and in any order, allowing management to takeadvantage of new opportunities as they arise and refine the strategicplan as problems are presented.

The STRATEGY FORMULATION module preferably includes four softwarecomponents (ASSESS, FORMULATE, ANALYZE and SELECT) that function as acontinuous STRATEGY FORMULATION cycle. The four software components maybe executed at any time and in any order. The ASSESS component assiststhe organization's management in identifying the key forces in both theinternal and external environments that may affect the organization inthe future and analyzing how these forces affect the current and futureof the organization. The FORMULATE component assists the organization'smanagement in creating and articulating alternative strategies for theorganization. The ANALYZE component assists the organization'smanagement in reviewing strategic alternatives through the use ofanalytic methods. The SELECT component assists the organization'smanagement in selecting and finalizing the vision and strategy of theorganization.

In a preferred embodiment, the FORMULATE component includes a strategyformulation engine that assists the user with the generation of amulti-layered strategy description that includes integratedimplementation requirements. The strategy formulation engine includes atleast three layers. In the first layer the organization's strategicdirection is described, including the current state of the organizationand a vision of the organization's future. In the third layer, strategyplatform requirements are identified for implementing the strategy. Inthe second layer, the strategy description and the strategy platformrequirements are integrated.

In a preferred embodiment, the strategy formulation engine provides aframework for creating a five-layer strategy description. In the firstlayer, the user formulates a description of the strategic direction ofthe organization's growth strategy, including a vision of theorganization's future and a target date for achieving the vision. In thesecond layer, the user breaks down the strategic direction into a moredetailed description of the evolution of the organization's businessphases, with each business phase having an associated target date. Inthe third layer, the user creates a roadmap of strategy platforms forthe organization to follow over the course of the strategic timeframe.The user is preferably provided with a graphical user interface forselecting, creating, manipulating and interconnecting strategyplatforms. In the fourth layer, the strategy platforms are selected,created and/or modified to achieve the strategic vision. In a preferredembodiment, each strategy platform includes requirements and outputs.Strategy platform requirements define the specific needs that arenecessary to create the strategy platform. Strategy platform outputsidentify the direct and indirect benefits expected to be received fromthe implementation of the strategy platform. The inputs to a strategyplatform include at least one list of strategy platform requirements.Strategy platform requirements are the detailed requirements for thestrategy platforms and may be directly processed and transformed intoimplementation activities. In the fifth layer, the strategy platformrequirements are identified and categorized and current capabilities andfuture requirements for the strategy platform requirements to assistwith the strategic goals are defined.

The STRATEGY ALIGNMENT module preferably includes four components (ALIGNSTRATEGY, ALIGN OPERATIONS, PLAN and ASSIGN) that function as acontinuous cycle. The four software components may be executed by an enduser at any time and in any order. The ALIGN STRATEGY component assiststhe organization's management in ensuring that the strategic elements ofthe approved strategy are aligned. In a preferred embodiment, alignmentis performed using an alignment matrix that illustrates the relationshipbetween two strategic elements. The ALIGN OPERATIONS component assiststhe organization's management in ensuring that essential aspects of theorganization's operations, technology, and people are aligned with theapproved strategy. The PLAN component assists the organization'smanagement in developing plans corresponding to the alignment. TheASSIGN component assists the organization's management in thesynchronization, approval and assignment of enterprise initiatives,projects and metrics.

In a preferred embodiment, the STRATEGY ALIGNMENT module includes amulti-level enterprise strategy alignment. On an enterprise-level, theenterprise strategy alignment includes a plurality of alignmentframeworks, each framework providing a graphical representation ofnumerous alignment status between various sets of strategic elements. Ina preferred embodiment, the enterprise strategy alignment includes fivealignment matrices on each framework. The first alignment matrix is usedto align a set of strategic goals and a set of performance metrics. Thesecond alignment matrix is used to align the set of strategic goals anda set of value creation platforms. The third alignment matrix is used toalign the set of performance metrics and a set of strategic initiatives.The fourth alignment matrix is used to align the set of value platformsand the set of strategic initiatives. The fifth alignment matrix is usedto align the set of strategic initiatives and a set of leadership roles.The enterprise strategy alignment may also include an operations-levelframework, and one or more intermediate-level frameworks that connectthe enterprise-level elements to the operations-level elements.

The STRATEGY IMPLEMENTATION module preferably includes four components(LAUNCH, IMPLEMENT, MEASURE and OPTIMIZE) that function as a continuouscycle. The four software components may be executed by an end user atany time and in any order. The LAUNCH component manages the launch ofimplementation activity for the strategy across the enterprise. TheIMPLEMENT component facilitates the day-to-day management ofinitiatives, projects and metrics. The MEASURE component tracks andreports on the implementation of the organization's strategy. TheOPTIMIZE component identifies opportunities and areas for improvementthat arise during the execution of the organization's strategy.

A more complete understanding of the Enterprise Strategy AlignmentFramework will be afforded to those skilled in the art, as well as arealization of additional advantages and objects thereof, by aconsideration of the following detailed description of preferredembodiments. Reference will be made to the appended sheets of drawings,which will first be described briefly.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a flow diagram illustrating a prior art strategic planningprocess;

FIG. 2 illustrates a preferred environment for an enterprise strategymanagement system;

FIG. 3 illustrates a preferred embodiment of an enterprise strategymanagement application;

FIG. 4 illustrates a preferred embodiment of the software modules of anenterprise strategy management application;

FIGS. 5 a-d illustrate a preferred data flow of the software componentsof a STRATEGY FORMULATION module;

FIGS. 6 a-d illustrate a preferred data flow of the software componentsof a STRATEGY ALIGNMENT module;

FIG. 7 illustrates a preferred embodiment of an alignment matrix;

FIGS. 8 a-d illustrate a preferred data flow of the software componentsof a STRATEGY IMPLEMENTATION module; and

FIG. 9 illustrates a preferred strategy formulation engine;

FIGS. 10 a-c illustrate user views of various levels of a strategyformulation engine;

FIG. 11 illustrates a strategy platform;

FIG. 12 provides an example of a completed strategy platform;

FIG. 13 is a preferred database structure for storing strategyrequirements data;

FIG. 14 illustrates a preferred embodiment of the enterprise alignmentprocess;

FIG. 15 a-b illustrates a preferred embodiments of strategy andoperational frameworks

FIG. 16 illustrates a preferred data relationship of and enterprisestrategy alignment

FIG. 17 illustrates a sample data flow of alignment objects

FIG. 18 illustrates the preferred process for aligning objects in astrategy alignment

FIG. 19 illustrates a sample data flow from a data base to a Alignmodule

DESCRIPTION OF A PREFERRED EMBODIMENT

In a preferred embodiment of the present invention, an enterprisestrategy management application includes a framework for aligning,managing and implementing an enterprise strategy. In the detaileddescription of a preferred embodiment that follows, like elementnumerals are used to describe like elements illustrated in one or morethe aforementioned figures.

A preferred operating environment for an enterprise strategy managementapplication (ESM) is illustrated in FIG. 2. At least one user device 12is adapted to communicate with at least one web server 14 through anetwork 16. The network 16 may include one or more communicationsnetworks that facilitate communications between the user device 12 andthe web server 14, such as the Internet, intranets, local area networks,wireless networks and telephone networks. In a preferred embodiment, theuser device 12 is a personal computer. However, the user device 12 maybe any device that is adapted to communicate with the web server 14,such as a personal digital assistant, wireless application protocoltelephone or television set-top box. The web server 14 preferablyincludes one or more World Wide Web servers that are adapted to servecontent to the user device 12 through web browser software executing onthe user device 12.

The web server 14 is connected to an application server 18, preferablythrough a local area network. In a preferred embodiment, the applicationserver 18 is a JAVA application server that executes applications formanaging and implementing the enterprise strategy managementapplication. The application server 18 is connected to a storage system20 that stores a plurality of databases used by the ESM. The storagesystem 20 may include a database server, a storage area network, one ormore network attached storage devices or any other data storage deviceor system that is capable of storing ESM data. The application server 18is preferably connected to an integration engine 22, which providesintegration services between the ESM and other enterprise applications,such as an enterprise resource planning application 24, a supply chainmanagement application 26 or a client relationship managementapplication 28. The integration engine 22 may execute on the applicationserver 18 and/or one or more other servers connected to the applicationserver 18. Through the integration engine 22, the ESM shares data andreports with other enterprise applications.

It should be appreciated that the operating environment described inFIG. 2 is merely illustrative and that alternative network and serverconfigurations are contemplated within the scope and spirit of thepresent invention. For example, in alternative embodiments the functionsperformed by the data storage 20, application server 18 and web server14 may be performed by a single computer system or by a plurality ofcomputer systems distributed across any number of locations.

The ESM will now be described with reference to FIG. 3. In a preferredembodiment, the ESM is a software application that includes a STRATEGYFORMULATION software module 30, a STRATEGY ALIGNMENT software module 40and a STRATEGY IMPLEMENTATION software module 50. The STRATEGYFORMULATION module 30 includes applications and processes for assistingthe organization's management in setting and refining the strategicdirection of the organization. In operation, end users utilize theSTRATEGY FORMULATION module 30 to assess the internal and externalenvironment including performance results and newly identified strategicopportunities, formulate and analyze strategic alternatives anddetermine and approve a final strategy description. The STRATEGYALIGNMENT module 40 includes applications and processes for assistingthe organization's management in focusing the entire enterprise onachieving the described strategic goals. In operation, end users utilizethe STRATEGY ALIGNMENT module 40 to align the described strategycomponents, describe and align operational strategy components, planprojects, initiatives and performance metrics activity, and deployimplementation responsibilities. The STRATEGY IMPLEMENTATION module 50includes applications and processes for assisting the organization'smanagement in efficiently distributing and executing the organization'sstrategy. In operation, end users utilize the STRATEGY IMPLEMENTATIONmodule 50 to activate the launch of activities, implement and measurethe execution of strategy and performance results, and identify theopportunities to optimize strategic performance.

As will be described in greater detail below, the STRATEGY FORMULATIONmodule 30, the STRATEGY ALIGNMENT module 40 and the STRATEGYIMPLEMENTATION module 50 interact to drive a continuous strategyplanning cycle 60 that offers many advantages over the prior art. Unlikethe prior art, the STRATEGY FORMULATION module 30 provides acomputer-implemented process for formulating strategy and the STRATEGYALIGNMENT module 40 provides a computer-implemented process for aligningstrategy with organizational resources. In addition, the continuousstrategy planning cycle 60 provides a framework that allows for theefficient management and implementation of a larger number of strategicobjectives than is practical under a traditional strategy planningapproach. Unlike the prior art, the steps in the continuous strategyplanning cycle 60 may be executed at any time and in any order, allowingthe organization to take advantage of opportunities as they arise andrefine different aspects of the strategic plan as problems arepresented. In addition, the continuous strategy planning cycle 60provides a framework to allow refinements to be made across multiplestrategy planning cycles. This allows an organization to select moreambitious strategic objectives (including strategic objectives that maynot appear achievable) than would be practical to implement under theprior art approaches. Additional advantages should be readily apparentto persons having ordinary skill in the art.

As illustrated in FIG. 4, the STRATEGY FORMULATION module 30 preferablyincludes four software components: ASSESS 32, FORMULATE 34, ANALYZE 36and SELECT 38. The software components of the STRATEGY FORMULATIONmodule 30 interact to function as a continuous strategy formulationcycle and may be executed by end users at any time and in any order. Apreferred embodiment of the ASSESS component 32 is illustrated in FIG. 5a. The ASSESS component 32 includes processes for assisting theorganization's management in identifying and analyzing the key forces inboth the internal and external environments that may affect theorganization in the future. The ASSESS component 32 analyzesenvironmental data from external research/information 70 (e.g., marketdata obtained from third-party research firms), internalresearch/information 72 (e.g., data received from other enterpriseapplications through the integration engine), the current approvedstrategy 80 (produced by the SELECT component 38) and enterpriseperformance information 118 (produced by the STRATEGY IMPLEMENTATIONmodule 50 from a prior strategy planning cycle) using techniques ofenvironmental scanning and competitive intelligence. In the preferredembodiment, the data used by the modules and components of the ESM maybe accessed through the storage system 20 (see FIG. 2). Based on theanalysis of the input data, the ASSESS module 32 generates output data74, including an external environmental assessment, an internalenvironmental assessment, a competency profile of the organization anddecision criteria. The output data 74 may be produced using conventionalanalytical approaches such as Strength, Weakness, Opportunity & ThreatAnalysis (SWOT Analysis) and internal Value Chain Analysis.

A preferred embodiment of the FORMULATE component 34 is illustrated inFIG. 5 b. The FORMULATE component 34 includes processes for assistingthe organization's management in creating and articulating alternativestrategies for the organization. The FORMULATE component 34 retrievesthe external assessment, internal assessment, competency profile anddecision criteria 74 generated by the ASSESS module 32 and analyzes thedata to formulate strategy alternatives 76. The strategy alternatives 76may be produced using conventional approaches and concepts such asFive-Forces Competitive Analysis and Strategic Groups, or through astrategy formulation engine that assists the user with the generation ofa multi-layered strategy description that includes integratedimplementation requirements.

A preferred embodiment of a strategy formulation engine will now bedescribed with reference to FIGS. 9-13. As illustrated in FIG. 9, thestrategy formulation engine assists the organization in generating amulti-layered strategy description 200 that integrates theorganization's strategic direction 202 with strategy platformrequirements 210. At the highest level, strategic direction 202, theorganization's strategic direction is described, including the currentstate of the organization and a vision of the organization's future. Atthe lowest level, strategy platform requirements 210, detailedrequirements are identified for implementing the strategy. The strategicdirection layer 202 and the strategy platform requirements layer 210 areintegrated through at least one intermediate layer, such as businessmodel evolution/phases layer 204, strategy platform integration layer206 and strategy platforms layer 208.

A preferred operation of the strategy formulation engine will now bedescribed with reference to FIGS. 10 a-c & 11. As illustrated, thestrategy formulation engine provides the user with at least oneinterface for each layer 202-210 that allows the user to create, editand manipulate information associated with the layer. An interface forviewing the first layer, strategic direction 202, is illustrated in FIG.10 a. In this layer, the user formulates a description of the strategicdirection of the organization's growth strategy, including a vision ofthe organization's future 220 and a target date 222 for achieving thevision 220. In a preferred embodiment, the strategic directioncorresponds to a conventional vision statement, but may include a morecomplex description or be presented in an alternative format that issuited to the organization. For example, the strategic direction may becomprised of a single phrase, such as “creating world class technicalsupport systems,” or a detailed report which may be adapted from thedata output from the ASSESS component. In a preferred embodiment, thestrategy formulation engine stores sample descriptions of current states224 and future visions 220 for selection and/or editing by the user.These samples may include descriptions from a prior continuous strategyplanning cycle, user defined samples and predefined samples that includecommon descriptions of current states 224 and future visions 220.

A preferred interface for viewing the second layer, business modelevolution/phases 202, is illustrated in FIG. 10 b. In the second layer,the user breaks down the strategic direction 202 into a more detaileddescription of the evolution of the organization's business phases. Eachbusiness phase, such as business phases 226 a-c has an associated targetdate 228 a-b and 224 for completion of the business phase. For example,a computer hardware company with a disjointed technical supportoperation may have a strategic vision of “creating world classtechnology support systems.” This strategic direction may be broken downinto an “enabling infrastructure phase” that includes the creation of abasic infrastructure and foundation upon which the world classtechnology support systems will be built. A second business phase may bean “enhanced infrastructure phase” that includes building upon the basicinfrastructure to offer certain enhanced services to customers. A thirdbusiness phase may be a “break through value creation phase” thatincludes building a breakthrough infrastructure that offers breakthroughservices. In a preferred embodiment, the strategy formulation enginestores sample business phase descriptions for selection and/or editingby the user. These samples may include business phases from a priorcontinuous strategy planning cycle, user defined samples and predefinedsamples that include common business phases for implementing variousstrategic directions.

A preferred interface for viewing the third layer, strategy platformintegration 206, is illustrated in FIG. 10 c. In the third layer, theuser creates a roadmap of strategy platforms for the organization tofollow over the course of the strategic timeframe. As illustrated, theuser is presented with a graphical user interface for selecting,creating, manipulating and interconnecting strategic platforms, such asstrategic platforms 230 a-e and 232 a-c. The position of each strategicplatform 230 a-e and 232 a-c correlates the strategic platform with abusiness phase 226 a-c and arrows are used to identify theinterrelationships between the strategic platforms. Preferably eachstrategic platform defines a milestone for achieving the correspondingbusiness phases defined in the second layer. The strategic platforms maybe selected from a list of strategic platforms, including predefinedstrategic platforms that are commonly used to achieve particularbusiness phases, and strategic platforms created and/or modified in aprior strategy planning cycle.

FIG. 10 c illustrates a strategy roadmap for a computer hardwarecompany. In the company's current state, technology support capabilitiesare distributed throughout the organization. In the first layer, thestrategy planning committee identified a long-term goal 220 of improvingits technology support capabilities and offering world class technologysupport by the target date 222. In the second layer, the companyidentified three business phases 226 a-c and target dates for thecompletion of each phase. In the first business phase 226 a, the companywill create the necessary infrastructure needed to enable the strategicvision 222. In the second business phase 226 b, the company will use theinfrastructure to enhance its services and capabilities. In the thirdbusiness phase 226 c, the company will build a breakthroughinfrastructure to enable breakthrough services. In the third layer, thecompany created a roadmap of strategy platforms 230 a-e and 232 a-c tofollow over the course of the strategic timeframe to achieve each of thebusiness phases. In one embodiment, the strategy platforms may begrouped by the user for easier manipulation, such as the group ofstrategy platforms 230 a-e for building out the infrastructure and thegroup of strategy platforms 232 a-c for building out customer supportcapabilities. The groups may be predefined, created by the user orretrieved from prior strategy planning cycles.

In the fourth layer, strategy platforms 206, individual strategyplatforms are selected, created and/or modified to achieve the strategicthemes. In a preferred embodiment, a strategy platform is a repeatableformula for the creation of value for the organization that includesrequirements and outputs. Strategy platform requirements define theinputs that are necessary to create the strategy platform. Strategyplatform outputs identify the direct and indirect benefits expected tobe received from the implementation of the strategy platform. Apreferred interface for building the strategy platforms is illustratedin FIG. 11. The user may select a strategy platform 230 from a list ofpredefined strategy platforms, create a new strategy platform or edit astrategy platform used in the strategy platforms integration layer 204.In one embodiment, the user may double-click on a strategy platform inthe strategy platforms integration layer 204 to view the interface forthe selected strategy platform 240, such as “world class field support.”The inputs to strategy platform 240 include at least one list ofstrategy platform requirements. Strategy platform requirements are thedetailed requirements for the strategy platforms and may be directlytransformed into implementation activities. In the illustratedembodiment, four groups of strategy platform requirements are used:operational requirements 242 a, organizational requirements 242 b,technology requirements 242 c and knowledge requirements 242 d. A listof the organization's competencies and capabilities may also be providedfor the user. The list may be derived and updated from the competencyprofile generated by the ASSESS component 32 and may be edited by theuser as needed. In a preferred embodiment, the user may add strategyplatform requirements by dragging-and-dropping the organization'scompetencies and capabilities from a list (not shown) into one of thegroups of strategy platform requirements 242 a-d. The output of thestrategy platform 240 produces deployment strategy platform requirements246 and value creation opportunities 248. The user may select deploymentstrategy platform requirements 246 and value creation opportunities 248from a predefined list, modify existing list elements and create newdeployment strategy platform requirements and value creationopportunities definitions. An example of a “world class field support”strategy platform is illustrated in FIG. 12.

The fifth layer, strategy platform requirements 208, is used to definethe business and operational needs necessary to build the strategyplatforms. Each strategy platform requirement identified in the fourthlayer, strategy platforms 206, is categorized and current capabilitiesand future requirements for the strategy platform requirement to assistwith the strategic goals are defined. In a preferred embodiment, eachstrategy platform requirement also includes a corresponding degree ofexistence that indicates the relative availability of the strategyplatform requirement. Degrees of existence may include “completelyavailable,” illustrated as full circle 250, “partially available,”illustrated as a partially filled circle 252, and “not available,”illustrated as an empty circle 254. A sample database structure forstoring the strategy platform requirements is illustrated in FIG. 19.The stored information preferably includes sufficient detail to directlytransform strategy platforms, and groups of strategy platforms, intoimplementation activities such as initiatives and projects. In apreferred embodiment, each initiative and project will be designed toachieve a “completely available” status for one or more strategyplatform requirement.

In the preferred embodiment, the multi-layered strategy descriptionillustrated in FIG. 9 may be created in any order and may even becreated by various individuals working independently. In addition, theuser may select one or more predefined business model templates tocreate a generic multi-layered strategy description that may be modifiedby the user and/or automatically updated in accordance with theorganization's specific requirements. The business model templates arepreferably real-world examples of successful multi-layered strategydescriptions and integrated implementation requirements that simplifythe creation of the multi-layered strategy description. Strategyalternatives can be created by modifying the mappings and/or definitionsin any of the layers. It should be appreciated that, as additional datais generated in the continuous strategy cycle, the strategy platformsand strategy alternatives can be automatically updated in real time.Management will obtain real time feedback on the availability of newcapabilities and the expiration of old capabilities. Obsolete or faultystrategy can be immediately corrected and implemented.

A preferred embodiment of the ANALYZE component 36 is illustrated inFIG. 5 c. The ANALYZE component 36 includes processes for assisting theorganization's management in analyzing the strategic alternativesprepared by the FORMULATE component 34. The ANALYZE component 36 alsoretrieves the external assessment, internal assessment and decisioncriteria 74 generated by the ASSESS component 32. In a preferredembodiment, the analysis of the strategy alternatives includes a riskanalysis and an assignment of a score for each strategic alternativebased on the decision criteria. This may be accomplished usingconventional approaches as known in the art. After analyzing thestrategic alternatives, the end user may select one of the strategyalternatives 78 for implementation.

A preferred embodiment of the SELECT component 38 is illustrated in FIG.5 d. The SELECT component 38 includes processes for assisting theorganization's management in selecting and finalizing the vision andstrategy of the organization. The SELECT component 38 retrieves theexternal assessment, internal assessment and decision criteria 74generated by the ASSESS component 32 and the selected strategy 78generated by the ANALYSIS component 36. Through the SELECT component 38,the end user creates a detailed strategy specification and approves thefinalized strategy 80. In a preferred embodiment, the finalized strategy80 may be generated through one or more end user applications thatassist the end user in defining and describing the organization'sstrategy in relation to the product and service it offers and the marketsegments the organization is targeting.

Referring back to FIG. 4, a preferred embodiment of the STRATEGYALIGNMENT module 40 includes four components: ALIGN STRATEGY 42, ALIGNOPERATIONS 44, PLAN 46 and ASSIGN 48. The software components of theSTRATEGY ALIGNMENT module 40 function as part of a continuous cycle andmay be executed by an end user at any time and in any order. A preferredembodiment of the ALIGN STRATEGY component 42 is illustrated in FIG. 6a. The ALIGN STRATEGY component 42 retrieves the approved strategy 80that was generated by the SELECT component 38 of the STRATEGYFORMULATION module 30, as well as deployed performance metrics 92previously generated by the ASSIGN component 48. The ALIGN STRATEGYcomponent 42 is used by the organization's managers to ensure that thestrategic elements of the approved strategy are aligned. The ALIGNSTRATEGY component 42 outputs data describing the strategy alignment andstrategic elements 94, such as the organization's initiatives, valueplatforms, performance metrics and leadership roles. The ALIGN STRATEGYcomponent 42 may be implemented using conventional concepts of projectmanagement. FIG. 7 illustrates a preferred input screen 100 for use bymanagers in aligning strategic elements, such as enterprise initiativesand performance metrics. As illustrated, each metric is listed in acolumn 102 and each initiative is listed in a row 104. The end userutilizes the intersection between the columns 102 and the rows 104(alignment matrix) to define the relationship between each metric andeach initiative. In one embodiment, a symbol 106 is placed at theintersection of a metric and each initiative it supports.

In a preferred embodiment, the STRATEGY ALIGNMENT module 40 providesmanagers with an enterprise strategy alignment for managing strategyimplementation. This alignment consists of frameworks, referred toherein as an enterprise strategy alignments, provides management with atool to view of all aspects of the enterprise's strategic alignment.Through the enterprise strategy alignment, the speed of strategyexecution will be enhanced and the enterprise will have greaterflexibility to manage and adapt enterprise strategy. Through theenterprise strategy alignment, managers can ensure that strategic goalsare well supported by initiatives and that all of the initiatives arefocused in the same direction. The enterprise strategy alignment mayalso be used to define leadership roles and responsibilities and assignperformance metrics.

A preferred embodiment of a enterprise strategy alignment 300 isillustrated in FIGS. 13-18. Referring to FIG. 15 a, an enterprise levelview of the enterprise strategy alignment 300 includes five lists ofstrategic elements that are aligned through five alignment matrices 302,as described in FIG. 7. As illustrated, the lists of strategic elementsinclude value platforms 306, enterprise initiatives 308, strategythrusts 304, strategic and operational performance metrics 310 andenterprise roles 312. Through the enterprise strategy alignment 300,each list of strategic elements 302-310, may be organized, managed andviewed. For example, the list of value platforms 306 may be prioritizedbased on strategic importance, operational impact, and value creationpotential. Each strategic element is presented to the user in a singlerow or column of its respective list of strategic elements 304-310.

The enterprise strategy alignment 300 provides a view and user interfacefor aligning the strategic elements. The relationship between strategicelements are defined through alignment matrices 302. Each alignmentmatrix 302 is formed at the intersection of two lists of strategicelements, and includes a plurality of boxes formed at the intersectionsof the strategic elements. A plurality of symbol types are preferablyused to describe the relationships between the individual strategicelements. For example, a checkmark 312 may be used to indicate that twostrategic elements are aligned, and an “X” 314 may be used to indicatethat the two strategic elements are misaligned. Individual roles mayalso be described through a plurality of symbols, such as letters 314.As illustrated, each box of the alignment matrix 302 indicates whetherthe role player will approve (A), lead (L), support (S) or implement (I)the corresponding strategic initiative 306. Each alignment matrix 302may be updated through the view illustrated in FIG. 7.

The strategy alignment 300 brings into a single framework all of theelements that need to be aligned in an enterprise. In a preferredembodiment, each of the lists of strategic elements in the strategyalignment 300 is initially filled with information previously generatedby the ESM. The lists may be viewed, managed and updated through thestrategy alignment 300 using conventional user interface tools as knownin the art, such as scroll bars for scrolling through a large list.

Referring to FIG. 18, a preferred process for creating a strategyalignment is illustrated. The process starts with a strategic direction420 defined through the STRATEGY FORMULATION module 30. Next, strategythrusts 422 are defined. Each strategy thrust 422 is preferably ahigh-level statement that guides future business development and valuecreation. In a preferred embodiment, the strategy thrusts are generatedby the strategy formulation engine (described above). The achievement ofeach strategy thrust 422 is then quantified in terms of performancemetrics 424, which identify operational and strategic performancemeasures. The performance metrics 424 may be defined through a balancescorecard system as known in the art. The relationship between thestrategy thrusts 422 and the performance metrics 424 are defined throughan alignment matrix 302 a. The strategic thrusts 422 also form the basisof value creation platforms 428. Each value creation platform 428leverages the enterprise's resources to enable business offerings andcreates infrastructure to deploy new business offerings. Therelationship between the strategic thrusts 422 and the value creationplatforms 428 is defined through an alignment matrix 402.

Enterprise initiatives 426 may then be created to define how performancemetrics 424 and value creation platforms 428 are achieved. Therelationship between the performance metrics 424 and the enterpriseinitiatives 426 is defined through an alignment matrix 402. Therelationship between the value creation platforms 428 and the enterpriseinitiatives 426 is defined through an alignment matrix 402. Oncecreated, the enterprise initiatives 426 may be assigned to particularroles 430. Assigning leadership roles for enterprise initiatives 426 isgreatly enhances the successful execution of the enterprise strategy.Although a preferred process for creating a strategy alignment 300 isillustrated in FIG. 14, it should be appreciated that the strategyalignment 300 may be developed in any order.

From the enterprise strategy alignment, each strategic element may bedelegated to lower level entities in the enterprise, such as businessunits. In a preferred embodiment, the enterprise strategy alignment is amulti-tiered framework that engages all levels of the enterprise in anintegrated vision for the future. A multi-tiered enterprise strategyalignment is illustrated in FIG. 16. An enterprise strategy alignment350 defines an enterprise-level strategy alignment, including anassignment of roles for each enterprise initiative. These roles may besplit among one or more business units 352. Each enterprise strategyalignment 352 defines a business unit-level strategy alignment. In apreferred embodiment, the enterprise strategy alignment 352 is initiallycreated with the subset of strategic elements delegated from the parentstrategy alignment. Each business unit then completes its own alignment352 (e.g., by following the process illustrated in FIG. 14). Eachstrategy alignment 352 at the business unit level may be broken downinto one or more alignments 354 at the operations level. At theoperations level, operations plans are developed that link and integratespecific operations and technology plans, metrics and projects thatdirectly enable the business unit strategies. It will be appreciatedthat, in alternate embodiments, the multi-tiered enterprise strategyalignment may include any number of tiers.

A preferred embodiment of the ALIGN OPERATIONS component 44 isillustrated in FIG. 6 b. The ALIGN OPERATIONS component 44 retrieves theapproved strategy 80 that was generated by the SELECT component 38 ofthe STRATEGY FORMULATION module 30, as well as the strategy components,enterprise initiatives, performance metrics, leadership roles andstrategy alignment data 94 generated by the ALIGN STRATEGY component 42.The ALIGN OPERATIONS (see FIG. 15 b) component 44 assists theorganization's management in ensuring that essential aspects of theorganization's operations, technology, and people are aligned with theapproved strategy. The data 96 produced by the ALIGN OPERATIONScomponent 44 includes operational elements such as operationsinitiatives and projects, project metrics and leadership roles, as wellas complete operations alignment data. The ALIGN OPERATIONS component 44may be implemented using conventional project management concepts tointegrate operational elements with the selected strategy. In apreferred embodiment, the operational elements are aligned by managersusing an alignment matrix as illustrated in FIG. 7.

A preferred embodiment of the PLAN component 46 is illustrated in FIG. 6c. The PLAN component 46 retrieves the strategy alignment, operationalalignment, initiatives, projects, performance metrics and leadershiproles 94 and 96 generated by the ALIGN STRATEGY component 42 and theALIGN OPERATIONS component 44, respectively. The PLAN component 46assists the organization's management in developing plans correspondingthe approved strategy and alignments. In a preferred embodiment, theALIGN OPERATIONS component 44 produces data 98 including detailed plansfor initiatives, projects and performance, and a business case analysis.The ALIGN OPERATIONS component 44 may be implemented using conventionalproject planning methods.

A preferred embodiment of the ASSIGN component 48 is illustrated in FIG.6 d. The ASSIGN component 48 retrieves the strategy alignment data 94generated by the ALIGN STRATEGY component 42, the operations alignmentdata 96 generated by the ALIGN OPERATIONS component 44, and the businesscase analysis and detailed plans for initiatives, projects andperformance data 98 generated by PLAN 46. The ASSIGN component 48assists the organization's management in the synchronization, approvaland assignment of enterprise initiatives, projects and metrics. In apreferred embodiment, the output data 110 including initiativeimplementation plans, project implementation plans and deployedperformance metrics are generated by the ASSIGN component 48. The outputdata 110 may be generated using conventional approaches as known in theart.

Referring back to FIG. 4, a preferred embodiment of the STRATEGYIMPLEMENTATION module 50 includes four components: LAUNCH 52, IMPLEMENT54, MEASURE 56 and OPTIMIZE 58. The software components of the STRATEGYIMPLEMENTATION module 50 function as part of a continuous cycle and maybe executed by an end user at any time and in any order. A preferredembodiment of the LAUNCH component 52 is illustrated in FIG. 8 a. TheLAUNCH component 52 retrieves the initiative implementation plans,project implementation plans and deployed performance metrics data 110generated by the ASSIGN component 48 of the STRATEGY ALIGNMENT module40. In addition, the LAUNCH component 52 retrieves data 118, includingenterprise performance reports, improvement plans and identifiedopportunities, previously generated by the OPTIMIZE component 58. Endusers use the LAUNCH component 52 to manage the launch of implementationactivity for the enterprise strategy. The LAUNCH component 52 generatesa status list of activated initiatives, activated projects and otherrelated data 112.

A preferred embodiment of the IMPLEMENT component 54 is illustrated inFIG. 8 b. The IMPLEMENT component 54 retrieves the initiativeimplementation plans and project implementation plans 110 generated bythe ASSIGN component 48 of the STRATEGY ALIGNMENT module 40, theactivated initiatives, activated projects and other related data 112generated by the LAUNCH component 52, and an execution results report116 previously generated by the MEASURE component 56. The IMPLEMENTcomponent 54 assists managers in facilitating the day-to-day managementof initiatives, projects and metrics. The IMPLEMENT component 54maintains data 114 on completed initiatives, completed projects andimplementation.

A preferred embodiment of the MEASURE component 56 is illustrated inFIG. 8 c. The MEASURE component 56 retrieves the deployed performancemetrics 110 generated by the ASSIGN component 48 of the STRATEGYALIGNMENT MODULE 40, and implementation reports 114 from the IMPLEMENTcomponent 54. The MEASURE component 56 includes application tools forreporting and tracking the implementation of the organization's strategyand produces an execution results report 116. The MEASURE component 56may be implemented using conventional performance measurement approachessuch as a Balanced Score Card.

A preferred embodiment of the OPTIMIZE component 58 is illustrated inFIG. 8 d. The OPTIMIZE component 58 is adapted to receive completedinitiatives, completed projects and implementation reports 114 from theIMPLEMENT component 54, and the execution results report 116 generatedby the MEASURE component 56. The OPTIMIZE component 58 providesapplication tools for managers to use in identifying opportunities andareas for improvement that arise during the execution of theorganization's strategy. The OPTIMIZE component 58 produces output data118 such as enterprise performance reports, improvement plans and listsof opportunities. The OPTIMIZE component 58 may be implemented usingfeedback loop concepts to match opportunities with resources.

Having thus described a preferred embodiment the System and Method forEnterprise Strategy Management, it should be apparent to those skilledin the art that certain advantages of the within described system havebeen achieved. It should also be appreciated that various modifications,adaptations, and alternative embodiments thereof may be made within thescope and spirit of the present invention. For example, in the preferredembodiment the ESM includes three software modules, each of whichincludes four software components. However, it should be apparent tothose skilled in the art that the present invention may be implementedwith a different number of modules and components. In addition, itshould be appreciated that the strategy formulation engine and theenterprise strategy alignment may be implemented as part of any strategyplanning process, such as a conventional strategy planning process asillustrated in FIG. 1, or as standalone applications.

The scope of the present invention is defined by the following claims.

What is claimed is:
 1. A computer implemented method for developing astrategy alignment framework, utilizing a processor and stored in acomputer readable medium, comprising the steps of: (a) receiving viagraphic user interface a first information defining and describing aplurality of strategic elements including; receiving a plurality ofstrategy outcomes, receiving a plurality of performance metrics,receiving a plurality of strategy platforms, receiving a plurality ofstrategic initiatives, receiving a plurality of leadership roles and,(b) processing the first information received to provide a first displayof a strategy alignment framework wherein a plurality of alignmentmatrices is displayed and includes; a plurality of intersecting rows andcolumns wherein each row has a plurality of one of the aforementionedstrategic elements, and each column has a plurality of one theaforementioned strategic elements and, a box is formed and displayed atthe intersection of each row and column, (c) receiving via a graphicuser interface a second information defining an alignment statusrelationship between two sets of the aforementioned strategic elements,the second information comprising: an assessment of a neutral alignmentstatus relationship between strategic elements an assessment of analigned alignment status relationship between strategic elements anassessment of a critically alignment status relationship betweenstrategic elements an assessment of a mandatory alignment statusrelationship between strategic elements an assessment of a misalignedalignment status relationship between strategic elements an assessmentof a critically misaligned status relationship between strategicelements (d) processing the second information received to provide asecond display of an aligned strategy alignment framework wherein aplurality of aligned alignment matrices is displayed and includes; theapplicable aforementioned strategic elements within their respectiveaforementioned rows and columns and, the aforementioned alignment statusrelationships between aforementioned strategic elements within theirrespective aforementioned boxes (e) receiving via a graphic userinterface a third information that defines an alignment frameworkhierarchy, wherein the third information comprises; information defininga plurality of alignment frameworks comprised of a first type ofalignment framework including business unit, functional unit, orgeographical location information defining the placement of eachalignment framework within the alignment framework hierarchy informationdefining the aforementioned strategic elements to be shared betweenspecific alignment frameworks within the alignment framework hierarchy(f) processing the third information received to provide a third displayof an alignment framework hierarchy, wherein a plurality of alignmentframeworks are displayed, including their respective aforementionedfirst types, and their aforementioned placement within the alignmentframework hierarchy; (g) receiving via a graphic user interface a fourthinformation that defines a second type of alignment framework that eachspecific alignment framework within the aforementioned alignmentframework hierarchy may be, wherein the fourth information comprises;information defining an operations alignment framework comprised ofunique strategic elements including, strategy platforms, strategicinitiatives, projects, performance metrics, and leadership rolesinformation defining a driver alignment framework comprised of uniquestrategic elements including, strategy outcomes, strategy platforms,strategic initiatives, and external drivers